December 03, 2008
Volume: 12
Issue: 24
Top Stories
GRFR is on Vacation
Spanish Prime Minister Against Lukoil Purchase of Repsol Stake
Report: Taiwan’s Formosa Plastics Plans Refinery in Vietnam
Preem: Diesel Refining Margins Soar, but Crude Inventory Value Hurts
Three Green Groups Ask for Environmental Statement for Hyperion Facility
Competitiveness of Shell Refinery May be Hurt by EU Carbon Trading Scheme
Irving Oil-BP Refinery Could Take Eight Years to Build
GM to Cut Back to Four Brands; Ford Says it May Not Use Government Funding
Fatal Explosion, Fire at Delek’s East Texas Refinery
Mittal Pulls Out of Vizag Refinery Plans; Saudi Aramco Could Step In
Market Report
Brent
Gasoil
NYMEX Crude Down 4.7% Tuesday
News from Americas
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Western Puts Up Yorktown Refinery for Sale
New Ecuador Refinery on Schedule, Government Says
News from Middle East / Asia
Strong Waves, Broken Hose Cause Diesel Spill at Vietnam’s Dung Quat Refinery
China, Costa Rica Sign Agreements for Joint Refinery Projects
CNOOC, Shell, Qatar Release Details of Joint Refinery Project
Israel’s Oil Refineries Breaks Even in Q3
Chinese Automaker SAIC to Develop Hybrids and EVs
China to Allow More Flexibility in Fuel Prices When Crude Less than $130/bbl
Report: Economics May Delay Upgrade at Petrobras Japan Refinery
Delek Group Loses NIS 371 Million in First Nine Months
Total Still Committed to Saudi Arabia Refinery
News from Europe / Africa
Zambia May Upgrade Refinery
South African Refinery will Restart Early Next Year
Ford May Sell Volvo
Ireland to Unveil Electric Vehicle Plan
PKN Orlen Seeks Middle Eastern Partnership
Rosneft Q3 Earnings Jump 80%
Shell Global Solutions Acquires Emissions Capture Company
New Hydrocracker to Startup This Month at German Refinery

News from Americas

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Western Puts Up Yorktown Refinery for Sale

An executive with El Paso, Texas-based Western Refining said the company has put its Yorktown, Va., refinery on the market.

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New Ecuador Refinery on Schedule, Government Says

The timetable for a planned new refinery in Ecuador’s Manabi province has not been changed, the country’s oil and mines ministry said this week.

The announcement was in response to local press reports that said Venezuelan state oil company PDVSA may alter its investment in the project due to the drop in crude prices.

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News from Middle East / Asia

Strong Waves, Broken Hose Cause Diesel Spill at Vietnam’s Dung Quat Refinery

During test-run preparations last week at the Dung Quat refinery in Vietnam, strong waves damaged an offshore cargo hose that was loading diesel fuel into the 148,000 b/d facility.

Officials have not specified how much diesel fuel was spilled but indicated to news media the spill was not major and occurred off Vietnam’s central coast.

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China, Costa Rica Sign Agreements for Joint Refinery Projects

Chinese President Hu Jintao signed off on 25-year deal to help expand Costa Rica’s refinery on the Caribbean coast in Moin. China National Petroleum (CNPC) and Costa Rica’s state-run Refinadora Costarricense de Petroleo (Recope) will split the $1 billion cost for the project, which could be completed in 2013.

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CNOOC, Shell, Qatar Release Details of Joint Refinery Project

PetroChina, Qatar and Shell released details on their planned oil refinery and petrochemical facility in China.

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Israel’s Oil Refineries Breaks Even in Q3

Israel’s Oil Refineries reported that its consolidated net income broke even in the third quarter, compared to earnings of $18 million in the same quarter 2007.

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Chinese Automaker SAIC to Develop Hybrids and EVs

Chinese automaker SAIC Motor Corp. will form a venture to invest 2 billion yuan (U.S. $293 million) to develop clean cars.

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China to Allow More Flexibility in Fuel Prices When Crude Less than $130/bbl

China plans to reform its fuel price and tax policies to allow for more price changes and company control when crude is less than $130/bbl.

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Report: Economics May Delay Upgrade at Petrobras Japan Refinery

Petrobras could delay a planned expansion of the Okinawa, Japan, refinery that it is the majority owner of due to the decline in the price of crude and the current financial crisis.

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Delek Group Loses NIS 371 Million in First Nine Months

Israel’s Delek Group lost NIS 371 million (U.S. $92.7 million) in the first nine months of 2008, compared to earnings of NIS 1 billion (U.S. $250 million) in the same period 2007.

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Total Still Committed to Saudi Arabia Refinery

Christophe de Margerie, CEO of Total, said that the company remains committed to building a 400,000 b/d oil refinery in Jubail, Saudi Arabia despite the worsening of the global economy.

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News from Europe / Africa

Zambia May Upgrade Refinery

Zambia could upgrade its Indeni refinery to increase its fuel output in order to meet increased demand in the landlocked African country.

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South African Refinery will Restart Early Next Year

Engen of South Africa said its 125,000 b/d refinery in Durban may restart in about six weeks, or about mid-January 2008.

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Ford May Sell Volvo

With financial assistance from the U.S. government uncertain, struggling U.S. automaker Ford said it is exploring another way to generate cash: the possible sale of its Swedish unit Volvo.

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Ireland to Unveil Electric Vehicle Plan

Ireland’s government intends to present a plan to increase the number of electric vehicles in the country to 10% by 2020.

The push for electric vehicles is one of the initiatives introduced by Ireland’s Energy Minister Eamon Ryan, to reduce Ireland’s €6 billion import costs by 20% by 2020.

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PKN Orlen Seeks Middle Eastern Partnership

PKN Orlen of Poland has expressed interest in establishing a partnership with a Middle Eastern company.

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Rosneft Q3 Earnings Jump 80%

Russian state integrated oil company Rosneft reported Monday third quarter earnings of $3.5 billion, up 80% from the same quarter 2007.

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Shell Global Solutions Acquires Emissions Capture Company

Shell Global Solutions announced this week it has acquired Canada and China-based Cansolv Technologies, a developer of scrubbing technologies for capture of CO2 and other industrial gas emissions.

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New Hydrocracker to Startup This Month at German Refinery

Germany’s Bayernoil said this week that a new 2.4 million tonne per year mild hydrocracker at its 120,000 b/d Neustadt refinery will commence operations later this month.

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Top Stories

GRFR is on Vacation

Global Refining & Fuels Report is on vacation for the rest of 2008 and, therefore, will not be published Dec. 17 or Dec. 31.

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Spanish Prime Minister Against Lukoil Purchase of Repsol Stake

Spanish Prime Minister Jose Luis Rodriguez Zapatero said last week the Spanish integrated oil company Repsol needs to remain under Spanish management.

“The government wants Repsol and Spanish companies to be Spanish, with Spanish management, yet respecting the laws of the free market,” Reuters quoted Zapatero as saying to the country’s Congress.

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Report: Taiwan’s Formosa Plastics Plans Refinery in Vietnam

The Vietnamese government has approved a planned integrated oil refinery and power plant to be constructed by Taiwan’s Formosa Plastics Group in Vietnam’s Ha Tinh province.

The combined project would cost $16.2 billion including $15 billion for the planned 15 million ton per year refinery.

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Preem: Diesel Refining Margins Soar, but Crude Inventory Value Hurts

Swedish refiner Preem reported hefty refining margin gains on diesel/gasoil for third quarter 2008 compared to the third quarter 2007.

“Weighted business refining margin for the third quarter of 2008 increased to (U.S.) $7.84/bbl compared to $3.97/bbl in the third quarter of 2007,” Preem said.

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Three Green Groups Ask for Environmental Statement for Hyperion Facility

Three environmental groups -- the Sierra Club, Save Union County and Citizens Opposed to Oil Pollution -- have asked the South Dakota Department of Environment and Natural Resources (DENR) for an environmental impact statement assessing the proposed Hyperion refinery.

The groups allege that the state’s draft air permit for the 400,000 b/d Hyperion Energy Center (HEC), which was issued Sept. 11, is “fatally deficient,” and that the state should complete an assessment before approving any other component of the project.

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Competitiveness of Shell Refinery May be Hurt by EU Carbon Trading Scheme

The competitiveness of Shell’s 412,000 b/d Pernis refinery in the Netherlands may be damaged by the EU’s plan to require refineries and other CO2 emitters to pay for CO2 credits beginning in 2013 if the U.S. and China are not included, a company official said last week.

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Irving Oil-BP Refinery Could Take Eight Years to Build

A proposed refinery between Canadian refiner Irving Oil and integrated oil company BP could take as long as eight years to build instead of the three or fours years originally slated, Canadian media reported Irving Oil’s senior executive Kevin Scott as saying at a recent meeting on the project.

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GM to Cut Back to Four Brands; Ford Says it May Not Use Government Funding

Two of the Big Three automakers – Ford and General Motors (GM) – released yesterday their restructuring plans as required by U.S. Congressional leaders before Congress considers granting loans to bailout Ford, GM and Chrysler.

Chrysler planned a video presentation of its plan Tuesday evening. Plans from Ford, GM and Chrysler were due to U.S. Congressional leaders yesterday.

GM is requesting up to $12 billion in loans from the government, $4 billion of which it would use immediately.

It is also requesting a $6 billion line of credit in case current economic conditions continue. The company says it aims to repay the loans no later than 2012.

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Fatal Explosion, Fire at Delek’s East Texas Refinery

One person has been confirmed dead after an explosion and fire Thursday at the Delek Refining refinery in Tyler, Texas. At least six people were injured in the blast and have received medical treatment, according to a Delek press release.

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Mittal Pulls Out of Vizag Refinery Plans; Saudi Aramco Could Step In

Citing the global financial meltdown as a driving force, Mittal Energy Investments has “put on hold” its interests in a $10 billion, 15 million metric-ton-per-year refinery and petrochemical plant at Visakhapatnam in Andhra Pradesh, India.

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Market Report

Brent

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Gasoil

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NYMEX Crude Down 4.7% Tuesday

After dropping more than 9% Monday, the price of the January NYMEX crude oil futures contract was down 4.7% Tuesday, to $46.96/bbl.

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